The May 18, 2013, Powerball, worth $590.5 million and won by an 84-year-old resident of Zephyrillis, Florida, was the largest individual jackpot ever. (Note that in March 2012 three ticket holders split the largest-ever Powerball prize of $656 million.) Rather than take the prize in 30 annual installments totaling the $590.5 million, the winner elected a single prize payment of $370.9 million (after taxes, about $278 million). Suppose the winner set aside $150 million of the after-tax amount in a fund that earns 4.5% compounded monthly. After a deferral period of 16 years, how much would be available to the winner’s heirs at the end of each month for the next 50 years?
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